From the author of

From the author of

Price: Is Your Price Right?

What kind of price animal is your e-business? That's a question you need
to answer. And after you answer it, your web store must demonstrate it.

Do you sell products or services at a discount? Do you want to be a low-cost
leader in your market niche? Or are you a value-added reseller? Do you add value
to products in the form of some kind of service, charging a higher price? Do you
set the price of the products and services you sellor does the consumer?
Whatever pricing model you decide on, you need to make it very clear to the
shoppers that come to your site. Consumers don't like surprises. If you
promote your site as the low-price leader, your prices should show it. If
you're a boutique shop and charge higher-than-average prices, show the
value you've added to your products or service. Make it very clear what you
charge and whyand make sure it fits the expectations of your site's
visitors.

Another important thing is not to hide your prices. Nothing annoys a shopper
more than going through the process of ordering from you, entering the credit
card number, and then being told what the total shipped price is. Be sure that
you give your shoppers all the information they need to make a buying
decisionup frontbefore they buy. Don't draw the customer into
the buying process with low prices and then surprise him with exorbitant
shipping and handling charges on the order confirmation page. If you want to see
a shopper bolt for the door, this is the way to do it.

So how do you inform the shopper of your shipping and handling charges? You
can do it in one of two ways:

Provide an easy-to-find section on your site that lists and easily
explains your shipping and handling charges.

Present an order confirmation page to the buyer that lists the price of
the product and all applicable shipping and handling charges. Give the buyer the
total shipped price before you request the credit card number.

I suggest that you do both. That way, the shopper fully understands the total
amount of the sale before he or she completes the purchase. Don't forget to
include any applicable taxes in the total of the sale.